A simpler explanation of rolling positions is: the bold get rich, the timid starve.

The rolling position method: In 2018, I know of one market wave where two people became rich using this method~ It was really just one wave that led to wealth, but more ended up losing.

It's easy to say, for many futures traders, they like to casually talk about rolling positions, without looking at the market, whether to roll or not depends on their mood... The two good rolling position opportunities in 2018 were in April with EOS and the subsequent BCH surge.

If rolling positions fail once, it’s over... no matter how much you made before, one failure means it's over. The key is that rolling positions will repeatedly put you at a disadvantage.

The difficulty lies in the judgment of the big market. Enough talk, let me detail the use of the rolling position method and how to judge it.

The literal meaning of rolling positions is to keep rolling your positions. Let's take an example, when EOS is at $2, we judge that a big market is coming, and we believe EOS will reach 1000 RMB!!!!

So I choose to open long on EOS at $2, suppose I use 100 EOS. With 20 times leverage. So when EOS reaches $2.1, I already have 200 EOS, at this time I choose to close the position. Then I use 200 EOS to go long at $2.1. When EOS is about $2.205, I have 400 EOS... and keep rolling like this~ No joke, if EOS doesn't reach 1000, when EOS hits 150, how much money will you have? Scary, right? This is just considering the initial capital of only 100 EOS.

As for regular futures, when EOS reaches $2.205, your EOS is about 300. There is already a gap of 100 EOS, and we have only rolled the position once. Everyone knows how high this compound interest return is.

Of course, it comes with huge risks!!!!!!! Suppose: We open long on EOS with 100 at $2, continually rolling the position. When EOS reaches 150 RMB each!!! While we are fantasizing about a bright future. We hold an uncountable amount of EOS and choose to open long again at 150, after all, EOS is supposed to be over 1000 each in 2018. Suddenly: the milk stops flowing~ the star aura disappears~ waterfall, in a bull market, your mind is filled with fantasies, and if you're not careful... it's over... All successes can come to nothing.

Normal Futures: At this time, starting from $2, even if it falls back, but when it reaches $150 during a drop, there is still a huge space and time for reaction to take profits!!! And quite a lot, just less than rolling positions!

Rolling positions are like this, one mistake and it could be irrecoverable~ Of course, you say if I judge the market correctly? Such a market only appears in extreme situations, that is to say, in a bull market, or coin single fly~ Don't come to me with constant declines, rolling short? I’ll say it again, for me, constant declines are neither a bear market nor a bull market! It’s just a bull market not belonging to leeks.

Coin single fly~ I personally witnessed a leek making a fortune with BCH... really knows nothing, he just simply asked me about the rolling position operation, anyway, he opened with a negative 40% or more, didn't care, didn't look... In the end, the rolling position went from 50,000 RMB to nearly over 3 million, all in just a week... that was when BCH took off.

Do you think he is good at market judgment? No, he knows nothing, doesn't look at the candlestick chart, just mindlessly rolls the position... rolls until he sees a lot of money, and then cashes out. You think someone can always judge the market correctly? No mistakes at all along the way? I don't believe that... There will always be mistakes.

So: friendly advice: in situations where market judgment is decent, use rolling positions sparingly, roll 2-3 times, and take profits when they are good... If commodity futures are equivalent to the spot of digital currencies, the risk is similar. Therefore, digital currency futures are riskier than digital currency spot! The risk of rolling futures is far greater than that of digital currency futures.

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